3/27/2009 PUD Workshop Minutes - Part 2 CURRENT FINANCIAL SITUATION (continued): Division Managers continued discussions about cost reduction efforts. Reports were received from Joey Leverette for the Distribution and Collection Division and Stanley Mize for the Treatment Services Division. Notable changes are listed below: • In-house installation of new meters • Elimination of most take home vehicles • Shut down the Odor Control System at Flat Creek • Bypassed some treatment processes without jeopardizing EPD requirements • Eliminated water conservation patrolling • Modified maintenance response procedures for lift stations Public Utilities Director Kelly Randall stated some of the decisions have the utility “dancing on the edge”. The issue at hand is how comfortable is everyone with these decisions. It was noted that the community has zero-tolerance for odor making it important to be able to address this issue when necessary. Mr. Randall reviewed the expenses for the same time period. It was noted that the department was working toward $25,576,000 in operating expenses for FY2010. He also noted there would be no monies to transfer to Capital Projects in FY2010. Mr. Randall stated the FY2010 projected budget included $3,000 for hardship cases that go through the Community Service Center. In closing this section of the discussion, he stated the systems will have to go back to operating the way they are designed to operate as flows increase. RECOMMENDED CIP AND FUTURE PROJECTS: Engineering and Planning Section Chief Mak Yari stated the Capital Improvement Plan (CIP) is a vehicle for presenting the projects that need to be completed, the cost associated with them and the timeline for completing the project. The CIP doesn’t identify the funding source. This information is a key element of creating the financial model. Last year’s CIP was allocated 73% and 27% for water and wastewater projects respectively. In comparison, the proposed CIP was 77% and 23% water and wastewater projects respectively. Projects included in the Five-Year CIP were noted as follows: Water System Projects 1. Water Main Replacement 3,159,000 2. Water Treatment Plants 1,780,000 3. Cedar Creek Reservoir/Additional Treatment Capacity 15,350,000 4. Water Main Extensions/Improvements 3,750,000 5. Utility Relocation Related to Transportation System Improvements 35,231,000 6. Distribution System Improvements 20,790,000 7. Tank Maintenance Program 1,400,000 8. Facilities Improvements/Expansion 400,000 9. Capital Equipment Program 0 TOTAL 81,830,000 Wastewater System Projects 1. Sanitary Sewer Replacement/Rehabilitation 6,291,000 2. Water Reclamation Facilities 1,725,000 3. Sewerage System Improvements 6,672,000 4. Utility Relocations Related to Transportation System Improvements 7,428,000 5. Wastewater Collection System Studies 0 6. Facilities Improvements/Expansion 0 7. Wastewater System Capital Equipment 915,000 8. Watershed Protection 1,938,000 9. Hall County Wastewater System Program 4,896,000 TOTAL 29,865,000 Mr. Yari discussed the three most expensive water and wastewater projects. RECESS: 2:41 PM RECONVENE: 2:54 PM Note: Council Member Wangemann did not return from the break. Engineering and Planning Section Chief Mak Yari stated there were nine foam boards around the room depicting stimulus eligible projects. The following thirteen projects were submitted to GEFA and SRF representatives for review and consideration. The Pump Station Year 23 System Improvements Project was the only project on the priority list for stimulus funding thus far. 1. Upper Flat Creek Stream Restoration Regional Stormwater Detention Pond 2. Pump Station 23 Expansion & Improvements 3. Athens Highway Sanitary Sewer Extensions – Phases II and III 4. SR 365 Regional Sewerage System 5. Cleveland Highway Water Storage and Booster Station 6. Gainesville/Hall County Water Main Extensions and Improvements Projects 7. Water Meter Replacement Program/Radio Read 8. GEFA Year 23 Water Main Replacements 9. GEFA Year 23 Sanitary Sewer Replacements 10. Septage Receiving Stations 11. SCADA/Telemetry Upgrade 12. Hybrid Service Trucks 13. Unincorporated Islands Sanitary Sewer Extensions There was a brief discussion about the Upper Flat Creek Stream Restoration Regional Stormwater Detention Pond. Public Utilities Director Kelly Randall stated engineers experiencing a light work load were working on designing sewer service for the islands. COST OF SERVICE ANALYSIS: Finance and Administrative Division Manager Tina Wetherford stated the last analysis was completed in 2002. She reviewed the existing and calculated fees for the categories that were presented. It was noted that the Fire Sprinkler System Application Fee was a new item to consider. Mrs. Wetherford presented the following recommended fees: Water Tapping Fee ¾” $1,073 1” $1,198 1 ½” $2,815 2” $4,776 3” $7,405 Sewer Tapping Fee $1,012 Fire Sprinkler System Application Fee $15 (Inside & Outside) Fire Sprinkler System Monthly Fee 3” $8.61 4” $18.35 6” $53.30 8” $113.58 10: $204.26 Water Main Permitting & Inspection Fee $1.49/ft Sanitary Sewer Permitting & Inspection Fee $3.62/ft Fire Hydrant Meter Fees: Deposit ¾” $300 3: $1,270 Application Fee ¾” $80 3: $200 Late Read Fire Hydrant Fee ¾” $150 3” $150 Building Inspection Coordination Fee $20 Backflow Inspection Fee (Water) $60 Commercial Wastewater Inspection Fee $55 Fire Hydrant Flow Testing Fee $110 Meter Reading Fee (Outside Entities) $1/read/month Turn-on Fee $15 Turn-off Fee $10 Fee to turn off for non-payment $40 Deposit Fee ¾” inside $155 ¾” outside $215 Stream Monitoring Fee Minor Spill (0 – 10,000 gallons) $400 Large Spill (> 10,000 gallons) $4,500 Water & Wastewater Testing Fees BOD5 $30 COD $20 Coliform, Fecal $45 Coliform, Total $45 Nitrogen, Ammonia $20 Nitrogen, Nitrate $20 Nitrogen, Total Kjeldahl $40 Oil & Grease $35 pH $5 Orthophosphate, Total $30 Phosphorus, Total $30 Solids, Total $10 Solids, Total Suspended $11 Public Utilities Director Kelly Randall asked Council to review the fees and recommendations carefully. The recommendations have not been included in the financial model to be presented tomorrow which means if any additional revenues are generated, the fees will be adjusted to maintain a revenue neutral situation. Mr. Randall stated the Metropolitan North Georgia Water Planning District required local governments to have a multiple meter ordinance. He proposed that an ordinance addressing this be presented with other ordinances that are prepared as a result of this workshop. CLOSING THOUGHTS: Each Council Member expressed appreciation for the effort that has been put into preparing for this workshop and for the cost reduction efforts that have been implemented. EXECUTIVE SESSION: Motion to close the meeting to enter an executive session to discuss potential litigation at 4:02 pm. Motion made by Council Member Dunagan Motion seconded by Council Member Bruner Council Members voting in favor of the motion to close the meeting for an executive session were Figueras, Bruner, Dunagan and Hamrick. Council Members absent – Wangemann COUNCIL PRESENT: Figueras, Bruner, Dunagan, Hamrick COUNCIL ABSENT: Wangemann STAFF PRESENT: Padgett, Marlowe, Randall, Collins Motion to close the executive session at 4:30 PM. Motion made by Council Member Bruner Motion seconded by Council Member Dunagan Council Members voting in favor of the motion to close the meeting for an executive session were Figueras, Bruner, Dunagan and Hamrick. Council Members absent – Wangemann